Which of the Following Statements Is False

question 27

Multiple Choice

Which of the following statements is false?

• A) A company can change the method used for depreciating assets if the change can be justified because it provides a better measure of the company's profit.
• B) Either a change in estimate or a change in method can only be justified on the basis it provides a better measure of profit.
• C) A change in estimate requires the company to recalculate and restate all the prior years' estimates of depreciation and adjust the impact on the statement of financial position and income statement.
• D) A change in estimate is frequently necessary because the estimates of useful lives or residual values may change over time because conditions change.

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Definitions:

SSE

Sum of Squared Errors, a measure used in statistical analysis to quantify the variation or dispersion of a set of data points.

Dependent Variable

A variable in an experiment or model whose value depends on that of others.

Independent Variable

A variable in an experiment or study that is manipulated or controlled by the researcher to investigate its effect on a dependent variable.